Laura is an investor and a limited partner in a limited partnership
Two years after she becomes a limited partner, Laura thinks that the general partners are not doing a very good job managing the affairs of the limited partnership and participates in the management of the limited partnership. While she is participating in management, a bank loans $1 million to the limited partnership, believing that Laura is a general partner. If the limited partnership defaults on the $1 million loan, which of the following holds well?
A) Laura is not personally liable as she is a limited partner on paper.
B) Laura is personally liable if the bank, in good faith, thought she was a general partner.
C) Laura has unlimited personal liability as a limited partner.
D) Laura's liability is restricted to the value of her capital investment in the partnership.
B
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Under a 401(k) plan, what is compared to determine if the plan unfairly discriminates in favor of highly compensated employees?
A) the average percentage of salary made available to the highly compensated to defer is compared to the average percentage of salary made available to other eligible employees to defer B) the ratio of eligible highly compensated employees is compared to the ratio of eligible other employees C) the average percentage of salary deferred by the highly compensated is compared to the average percentage of salary deferred by other eligible employees D) the percentage of highly compensated employees over age 50 who participate is compared to the percentage of all other employees who participate
Establishing a separate payroll checking account and funding it as an imprest account
What will be an ideal response?